Newcrest Mining has reported solid financial results for the full year, including an $86 million rise in profit, despite a drop in gold production.
Newcrest Mining has reported solid financial results for the full year, including an $86 million rise in profit, despite a drop in gold production.
Newcrest, which operates the Telfer goldmine in Western Australia, said revenue from its gold operations was up 2 per cent on the prior year to $3.2 million along with copper, which was up 20 per cent to $7.8 million.
That comes despite a drop in full-year gold output, with Newcrest producing 2.2 million ounces of gold in the 12 months to June 30, down from 2.49m oz in FY19.
Newcrest posted a statutory profit of $647 million for FY20 and an underlying profit of $750 million, up 15 per cent and 34 per cent respectively.
Managing director Sandeep Biswas said the results were solid despite the onset of COVID-19 earlier in the year.
He also said the goldminer had “invested in the future” in FY20.
That includes $1.3 billion spent on acquiring the Red Chris gold-copper joint venture in Canada last August, along with $400 million for an increased stake in the Fruta del Norte operations in Ecuador.
Newcrest had also raised its stake in the Havieron joint venture with UK-based Greatland Gold to 40 per cent after spending $20 million on exploration.
Mr Biswas said Newcrest was tracking towards a 70 per cent JV ownership of the project, located 45 kilometres east of its Telfer mine in the Paterson Province.
That would require Newcrest to spend $65 million on exploration by March 2025.
“We are in the unique position of having three outstanding growth options from which we expect to add new production ounces to our portfolio in due course,” Mr Biswas said.
“Our operational and financial performance, strong balance sheet and outlook has allowed us to increase our dividends to shareholders for the fifth consecutive year, with the full year dividend being 14 per cent higher than last year.”
Newcrest will pay a final, fully franked dividend of US17.5 cents per share, representing a $142.8 million payout.
Its shares were down 0.25 per cent at 12:26pm AEST to trade at $34.38.
